Is there a way around this? (Please don't tell me to raise my CTR, because some highly competitive words will never have higher than 0.5%)
Not if you get to the root of the 'red star' problem and address it. For example, try adding more associated keywords (mine them from the new google keyword suggestion tool) or by using phrase/exact/negative keywords.
>>> Please don't tell me to raise my CTR
Sorry. But you will have to try and raise the CTR. Looks like you are not doing any drastic changes in the ad copy. Try an outrageously different ad copy see if it changes anything.
I wrote to them and they told me that even if I delete and add them back in, their system will recognize it as coming from a poorly scoring campaign and punish it accordingly. I've now tried making a new campaign and I'll see how it goes. Other wise I'll just open up another google account.
I do appreciate the advice tho.